Trump's 2025 Reciprocal Tariff Policies Severely Impact U.S. Stocks: Apple's Market Value Drops by $640 Billion, North American Car Market Expected to Shrink by 2 Million Vehicles

Taiwan • Business • 04/08 07:13
Trump's 2025 Reciprocal Tariff Policies Severely Impact U.S. Stocks: Apple's Market Value Drops by $640 Billion, North American Car Market Expected to Shrink by 2 Million Vehicles

In early April 2025, U.S. President Donald Trump announced the implementation of "reciprocal tariffs" on over 180 countries worldwide, causing a sharp drop in the U.S. stock market, resulting in Apple's market value evaporating by $640 billion in just three days. The North American automotive market is expected to see a sales drop of 2 million vehicles. Several financial institutions have increased their estimates of the probability of a U.S. economic recession, with JPMorgan predicting the likelihood has risen to 60%. Experts recommend that the Federal Reserve cut interest rates to stabilize the market, but Chairman Powell stated there is no immediate urgency to do so.

Key Updates

04/08 14:43

Trump's flawed tariff policy triggers backlash from U.S. companies: Apple moves iPhone production to India, reconstruction costs in Los Angeles skyrocket

In April 2025, former U.S. President Trump announced the implementation of "reciprocal tariffs" on multiple countries, with rates ranging from 10% to 54%. The American Enterprise Institute pointed out that the White House used an incorrect formula, causing the rates to be overestimated by a factor of four, leading to a backlash from businesses. Apple plans to produce 25 million iPhones in India to reduce costs; toy company BasicFun is facing pressure to raise prices. Reconstruction efforts after the Los Angeles wildfires have become more costly due to increased lumber tariffs.

04/08 13:12

An American think tank has revealed a tariff miscalculation by the Trump administration: The actual tariff rate for Taiwan, Japan, and South Korea should be 10%. The EU urges negotiations between the US and China to resolve trade disputes.

On April 2, President Trump of the United States announced the imposition of "reciprocal tariffs" on several countries around the world. However, Brent Neiman, an economist from the American Enterprise Institute and the University of Chicago, revealed that the Trump administration made errors in tariff calculations, resulting in the tariff rates for countries like Taiwan, Japan, and South Korea being overestimated by four times, when they should actually be 10%. European Commission President Ursula von der Leyen and Chinese Premier Li Qiang had a call, urging the resolution of trade disputes caused by U.S. tariffs through negotiations and expressed support for a fair and free international trade system.

04/08 12:44

U.S. Tariff Policy Affects Taiwanese Products: Prices of Taiwanese Soy Sauce Soar, Taiwanese Companies Look to India for Solutions

Beginning April 9, 2025, the United States will impose a 32% tariff on Taiwanese goods, affecting Taiwanese exporters. Due to the tariff, the price of Taiwanese soy sauce in the U.S. has risen from 210 NTD to nearly 300 NTD, and the bubble tea brand COMEBUY TEA is planning a 10% price increase. Some Taiwanese businesses are considering moving their production bases to India to cut down on taxes and transportation costs. The Taiwanese government has launched a contingency plan, encouraging companies to increase their investments in the U.S. and explore diverse market strategies to lessen reliance on the U.S.

04/08 11:39

Trump's tariff policies have severely impacted the Taiwanese-invested textile industry in Vietnam, and businesses are urging the Taiwanese government to negotiate for tariff reductions.

On April 9, 2025, U.S. President Donald Trump initiated the "Reciprocal Tariff" policy, imposing tariffs of 46% on goods from Vietnam and 54% on goods from China. This severely affected Taiwanese textile manufacturers with factories in Vietnam, leading to order cancellations, shipment delays, and factory shutdowns. The industry is urging the Taiwanese government to speed up negotiations with the U.S. to negotiate for tariff reductions or relief measures to ease the burden on the supply chain.

04/08 09:12

Trump's 2025 tariff policy triggers a supply chain crisis: Luxury cars from the UK and watches from Switzerland have temporarily halted shipments to the US.

In April 2025, U.S. President Donald Trump initiated the "Reciprocal Tariffs" policy, causing global trade disruptions. Brands like Jaguar Land Rover from the UK, Rolex from Switzerland, Nintendo from Japan, and Basic Fun from the U.S. have suspended shipments to the U.S. due to concerns about the uncertainty surrounding high tariffs. If the situation doesn't change, American consumers might face product shortages by July, especially in the areas of cars, luxury watches, toys, and electronics.

04/08 07:13

Trump's 2025 Reciprocal Tariff Policies Severely Impact U.S. Stocks: Apple's Market Value Drops by $640 Billion, North American Car Market Expected to Shrink by 2 Million Vehicles

In early April 2025, U.S. President Donald Trump announced the implementation of "reciprocal tariffs" on over 180 countries worldwide, causing a sharp drop in the U.S. stock market, resulting in Apple's market value evaporating by $640 billion in just three days. The North American automotive market is expected to see a sales drop of 2 million vehicles. Several financial institutions have increased their estimates of the probability of a U.S. economic recession, with JPMorgan predicting the likelihood has risen to 60%. Experts recommend that the Federal Reserve cut interest rates to stabilize the market, but Chairman Powell stated there is no immediate urgency to do so.

04/08 06:43

Trump's tariff policy in 2025 severely hits Taiwan's agriculture and fisheries industries, Singapore refrains from retaliation, BNP Paribas downgrades its rating on U.S. stocks.

In early April 2025, President Trump of the United States announced the imposition of import tariffs ranging from 10% to 50% on more than 180 countries globally, with additional tariffs based on trade deficits. Taiwan faced a 32% tariff, severely affecting its agricultural and fishery exports. Singapore, facing a 10% tariff, chose not to retaliate and emphasized deepening cooperation. In response to the policy risks, BNP Paribas downgraded its rating of U.S. stocks to "underweight," warning about the risk of stagflation in the U.S. economy.

04/08 06:43

Former President of the Federal Reserve Bank of New York, Bill Dudley, warns that the U.S. economy faces the risk of stagflation.

After President Donald Trump announced a new tariff policy, the market experienced turbulence, and the economic outlook worsened. Bill Dudley, former President of the New York Federal Reserve, warned that the U.S. faces inflation and slowing economic growth, with stagflation being the best-case scenario. The Federal Reserve is caught in a dilemma between raising interest rates to cool down the economy and lowering them, which could worsen inflation, with internal disagreements over policy. The tariff policy has triggered global trade tensions, shaken market confidence, and raised the risk of an economic recession.

04/08 03:11

U.S. Imposing 10% Tariff on San Marino: Businesses Express Concern, Government Carefully Assessing Economic Impact

On April 2, 2025, the United States announced the imposition of tariffs on imports from multiple countries, imposing a 10% tariff on San Marino, which is lower than the European Union's 20%. This move has sparked interest from Italian and EU businesses in using San Marino as an operational base. The San Marino government is assessing the economic impact of these new tariffs and emphasizes a comprehensive evaluation of all possibilities, focusing on sustainability and economic impact.

04/08 02:08

Trump's Tariff Policy Deals a Heavy Blow to Tech Stocks: Apple's Market Value Plummets by $63.8 Billion in Three Days, Broadcom Initiates a $10 Billion Buyback Plan

In early April, U.S. President Donald Trump announced the imposition of high tariffs on China and other trading partners, causing turmoil in global financial markets. Apple's stock price fell by 19% over three consecutive days, wiping out $63.8 billion in market value, and accelerated the transfer of its iPhone production line to India to address tariff pressures. Broadcom, on the other hand, announced a $10 billion stock buyback plan to stabilize its share price. This policy has had a notable impact on tech stocks, with Apple seeking tariff exemptions from the U.S. to lessen the impact.

Over $5 Trillion Lost in US Stock Market, Apple Takes Major Hit

On April 2, Trump announced a 10% baseline tariff on global imports and imposed additional tariffs ranging from 34% to 54% on countries with trade deficits such as China, India, and the EU. The announcement caused immediate volatility in the US stock market. According to The Yahoo Finance, the S&P 500 and Dow Jones Industrial Average lost nearly $5 trillion in market value over two trading days.

Apple Inc. was hit the hardest, with its stock price falling for three consecutive days, losing $640 billion in market value. UBS analysis indicated that if Apple continues producing the iPhone 16 Pro Max in China, the new tariffs could raise its US price from $1,199 to $1,549, a 30% increase. Analysts from JPMorgan and Barclays also predict that Apple will be forced to raise global prices by about 6%, or else its earnings per share could drop by 15%.

North American Auto Market Expected to Decrease by Nearly 2 Million Units

The automotive industry has also faced significant impacts. According to US automotive consultancy Telemetry, if the tariff policy continues, car sales in the US and Canada will decrease by nearly 2 million units this year. If the situation persists until 2035, annual sales will drop from 24.6 million units without tariffs to 17.6 million units, a decrease of about 7 million units.

The Trump administration imposed a 25% tariff on non-US manufactured vehicles on April 2, with tariffs on auto parts set to take effect on May 2. Only auto parts that meet the USMCA rules of origin are temporarily exempt. Bernstein analysts have identified GM and Ford as facing profit pressures, with their stock performance significantly weaker than the broader market.

Increased Risk of Economic Recession, Several Institutions Increase Recession Probability Forecasts

The market turmoil and rising costs triggered by Trump's tariff policy have led several financial institutions to raise the probability of a US economic recession. JPMorgan increased the recession probability by the end of 2025 from 40% to 60%, while Goldman Sachs raised the 12-month recession probability from 35% to 45%. S&P Global and HSBC estimate the recession probability to be between 30% and 40%.

According to Yuanta Securities Investment Consulting's model analysis, after the announcement of Trump's tariff policy, financial conditions in the market have tightened significantly, supply chain deliveries have slowed, and corporate investment and expansion have become conservative, with the US economic recession probability estimated at 46%.

Federal Reserve Faces Policy Dilemma, Experts Urge Decisive Rate Cuts

Amid the risk of "stagflation," characterized by economic slowdown and inflation pressures, the Federal Reserve's policy direction is under scrutiny. Jeremy Siegel, an honorary professor at the Wharton School of the University of Pennsylvania, pointed out that Trump's tariff policy has created high uncertainty in the economic and political systems, and the Federal Reserve should decisively cut rates to support demand. He believes that the money supply growth rate is only 4%, far below the desired 5.5%, indicating market liquidity is tight and should be eased through rate cuts.

According to Bloomberg, market expectations for the Federal Reserve to cut rates this year have risen from three to four rate cuts, with nearly a 40% chance of an early rate cut before next week's meeting. However, Federal Reserve Chairman Powell recently stated that despite market volatility, inflation remains high, and there is no rush to cut rates.

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